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How to Read A Moving Contract
By Susan Doktor MONEY RESEARCH COLLECTIVE
Mental health professionals often name moving among the most stressful life experiences we go through. If you’ve been responsible for organizing a move and have had to adjust to living in a new home — and possibly a new city or country — your head may be nodding in agreement right now.
We want our moves to go smoothly, but things go wrong more often than we’d like to think. Some of the problems that arise when moving can be traced back to not understanding the terms of the moving contracts we sign. Moving contracts are lengthy and often contain unfamiliar jargon. But if you learn how to read and understand your moving contract thoroughly, you may be able to sidestep many of the most common issues that arise when moving. You’ll not only save yourself a lot of extra stress. You’ll potentially save a good deal of money. And that’s reason enough to learn about moving contracts before you are asked to sign one.
Table of Contents
What to Look for When Reading a Moving Contract
How to Read a Moving Contract Guide
How to report damages and file claims
Useful Technical Terms For Reading a Moving Contract
How to Read a Moving Contract FAQs
What to look for when reading a moving contract
In short, you’re looking for details. And more details. Moving contracts contain plenty of them. And they’re all important. Here’s just a partial list of what you’ll find in the average moving contract:
- The exact moving services you’ll receive
- How much your move will cost
- The maximum allowable gross weight of your household belongings
- When you may be subject to additional charges
- A bill of lading
- Your moving day and delivery window
- Payment terms
- Insurance coverage limits
While it’s best to read a moving contract with a skeptical eye — you definitely want to be on the alert for “gotchas” — remember that contracts are designed to protect both parties who enter into them. Moving contracts outline your rights as a consumer. For example, did you know that the Federal Motor Carrier Safety Administration has rules about when and how you can be charged fees in excess of those outlined in a non-binding contract? The FMCSA also dictates the minimum financial responsibility a mover must take for your household goods should they be lost or damaged in transit. And the organization also lays down the law on safety — something everyone should be concerned about when hiring a moving company.
How to Read a Moving Contract Guide
So you’ve selected a mover and you have your contract in hand. Ready to sign on the dotted line? If you take anything from our guide, it should be this: not so fast! The information contained in your moving contract can make the difference between a satisfactory experience and a disaster. So let’s examine the specific details you should double-check before signing your contract. Reviewing your contract carefully should be a high priority on your moving checklist.
Make sure basic moving details are correct
Pick-up dates: Your boxes have been painstakingly packed and labeled. You’ve opened utility accounts for your new home. And someone is waiting to move into your old one. But the moving truck doesn’t show up. Nobody wants to be hung out to dry on their moving day. So the first detail you want to check is the date and time your moving company promises to pick up your belongings.
Delivery dates: If you’re making a local move, your belongings will travel from point A to point B on the same day. But if you’re making a long-distance move, your moving company will give you a delivery date window. That window can be a week or more long. Be sure your expectations are in line with your movers and be prepared to receive the contents of your home when they arrive.
Delivery location: Sometimes it’s the tiniest things that cause the most trouble. A single transposed number can kill you. So be sure to confirm that your new address is correct in your contract.
Special requests: Moving companies provide a wide range of services to make moving more convenient. If you avail yourself of packing or unpacking services or if you plan to store your belongings off-site, be sure those details are accounted for as line items—with prices—in your moving contract.
See if the quote in the contract is binding or non-binding
Moving companies may offer you one of two types of quotes — binding and non-binding. Your moving contract will reflect the type of agreement you came to with your mover. Which type of quote is better? Both have their pros and cons.
With a binding estimate, you know upfront what your move will cost you, no matter how much time it takes and how much your belongings actually weigh. But you pay for that peace of mind. Binding estimates are typically higher than non-binding estimates.
With a non-binding estimate, you may wind up paying more than you anticipate, but you may also pay less, if your belongings come in at a lower weight than the estimator predicted and your move takes less time.
Scope of services
Your contract will contain a section called the scope of services. It’s typically presented in a numbered list, detailing each stage of the moving process, such as inventorying and truck loading and unloading. If you hire a moving company to pack or unpack your belongings, it will be listed as a line item in the scope of services section of your contract. Note that your movers may also include specific instructions for you, the customer. It may stipulate, for example, that you have all of your belongings packed and ready for transport when your movers arrive.
Verify forms of payment and payment process
The payment section of your contract details how you will be charged for services, when the payment is due, and the consequences of non-payment. Your contract may specify a set fee or provide a breakdown of how the service will be priced — as a fixed rate or an hourly rate. If you’re paying an hourly rate, this section will explain how the calculation will be made. It is crucial to carefully review this section since once you sign the agreement, you are legally bound to pay the amount stated or adhere to the set pricing structure. If you have any concerns or questions about payments or pricing, it’s essential to clarify them before signing your contract. Afterward, it’s too late.
Additional charges and accessorial charges
Your moving contract may include a section or sub-section outlining potential additional charges, also known as accessorial charges. These fees are applied to specific, unexpected aspects of your move, such as navigating the moving truck through difficult road conditions or if your mover arrives and you’re not fully packed. If a driver has to perform extra work to complete your move, your moving company will charge for it.
Insurance Coverage
The Federal Motor Carrier Safety Administration mandates the movers offer two types of insurance: released value coverage and full value replacement coverage. Released value coverage is minimal and it’s included for free with your move. How minimal? Almost ridiculously low. Should your belongings be lost or damaged, your insurance company is only liable to pay $0.60 per pound of stuff. Imagine your belongings include a small mahogany table built in the 1800s. It may only weigh 15 lbs. So you’d only be covered up to $9 should it disappear during transit. Pretty disappointing.
Full replacement coverage, by contrast, means your moving company would be responsible for the actual value of your table, such as what it might fetch at an antique shop. Full value replacement coverage increases your moving costs. If you choose full value replacement coverage, you’ll make a list of all of the high-value inventory you’re asking your mover to transport and how much they’d cost to replace.. Taking photos of individual items can help you should you ever have to make a claim. The higher the value of your belongings, the more you will pay for insurance. Generally, full value replacement coverage costs about 1% of the declared value of your belongings.
Look for potential additional costs
One of the chief complaints consumers have about moving is that when they’ve completed a move, their moving company presents them with a bill that’s higher than they expect and exceeds the moving estimates their movers provided. So one of your main responsibilities is to scour your moving contract for any additional costs they might incur unwittingly. If you have a non-binding contract, this is especially important. Movers may tack on costs for additional hours of labor, disassembly or reassembly of furniture, charges for extra stops, and extra carry fees, such as when a mover is required to haul your belongings a greater distance from an available parking spot to your residence.
For more info, check out our article on the cheapest ways to move.
How to report damages and file claims
By law, your mover must detail how claims for damage or costs in excess of your moving quote will be handled. Sometimes it’s through arbitration but there are other legal processes, such as filing a lawsuit against your mover, that may be employed to settle disputes. These details should be included in your moving contract in a section of the document called Remedies.
Useful technical terms for reading a moving contract
Every industry has its own jargon and moving is no exception. So it helps to become familiar with a few technical terms before you begin the moving process. Here are a few key terms you should know when discussing your move with a moving company and reading your moving contract.
High-value inventory: Items included in a shipment valued at more than $100 per pound ($220 per kilogram).
Non-binding estimate: A non-binding estimate is a carrier’s approximation of what your move will cost. It’s based on a best-guess weight and requested services. Non-binding estimates are free and don’t require an in-home survey. However, your final cost will be determined based on the actual weight of your belongings, the complexity of the job, and tariffs at the time of the move.
Valuation coverage: A synonym for released value coverage. Moving companies must provide valuation coverage by law. It covers your belongings at $0.60 per pound per article.
Cubic feet: How volume is expressed. Volume is calculated by multiplying length times width time depth. It’s uncommon for movers to charge solely by the volume of your goods. Most charge by weight or a combination of the two.
Delivery window: If you’re moving a long distance, your goods will take some time to be delivered: sometimes two weeks or more. When you move interstate, your mover will be unlikely to promise you a specific delivery date. Rather, the company will give you a delivery window during which your goods will arrive at your new home.
Weight allowance: Weight allowance (or moving allowance) is the maximum weight of your shipment as indicated on your moving estimate and contract. Weight allowances may vary according to the capacity of a moving truck. But mostly, by providing a weight allowance, a moving company is making sure you don’t pay too little for your move. The weight of your goods will be determined just after your truck is loaded or just before your goods are delivered.
Line-haul charges: Your mover will calculate the cost of your move in part by determining the actual distance your moving truck travels between loading and unloading. That’s why local moves cost so much less than interstate moves.
How to read a moving contract FAQs
How can I cancel a moving contract?
You can cancel your move at any time during the moving process. But you may encounter cancellation fees if you've signed a moving contract. Before you sign a moving contract, be sure to inquire about cancellation fees. Most people don't plan on canceling their moves, of course, but sometimes unforeseen circumstances arise. There's a death in the family. It takes longer for you to close on the purchase of your home than anticipated. A job offer in another town falls through. You can probably imagine other circumstances, too.
How can I file a claim for a moving contract?
Moving companies may have different requirements for filing a claim. It's best to understand this process before you sign a moving contract. Information on filing claims should be part of the contract your mover provides. You can do your part to make the claims process easier by making sure moving inventories are accurate and taking photos of your expensive belongings before you get them ready for loading.
What to do if my moving company doesn't give me a moving contract?
Full stop! Any reputable mover will provide you with a contract to review and sign. Moving contracts outline the services you'll receive, the cost of your move (or estimated cost, in the case of a non-binding contract) , your insurance coverage, and more. You won't get that protection without signing a legal contract.
Is it better to hire professional movers or container services?
If you're willing to do a lot of heavy lifting, using a container service can save you some money. Moving via container may also provide you with greater flexibility. But when you pack a container yourself, the container company does not assume responsibility for your belongings while they're in transit. Only a professional moving company will do that. Nowadays, container companies rival professional movers in terms of the services they provide. But if you hire a portable moving container company to pack, load, unload, or store the contents of your container, your costs will approximate professional moving company costs.
